New Delhi: After taking significant leap during past couple of years, gold prices are now witnessing a constant fall and it is speculated that it may dive down to Rs 25000 per 10 grams in coming days. Notably, a fall of Rs 2500 per 10 grams has been registered during last two days with a plunge of Rs 750 on Monday.

Though, the buyers are elated with the development, they seem not to be in hurry and are maintaining wait and watch approach amid prediction of further fall in the prices. On the other hand, the silver prices have registered a decline of Rs 2,700 per kg.

Gold down nearly 3 pc in futures trade

Gold down nearly 3 pc in futures trade

Traders are of the view that those who are planning to buy the precious metal for upcoming marriage season should wait for at least three more months. According to the experts, the people in America and England have diverted their investment from gold to stock markets given the volatility in the gold prices which has increased its availability in the market. This has caused a major fall in the prices of gold. Gold was trading at its highest level of Rs 32,600 in December 2012, according to experts.

Hike in custom duty on gold is also being seen as a reason for sudden drop in the prices. Trades say that the duty on gold has been increased from 4 percent to 6 percent which is a reason for decline in the import of the precious metal. It is also being said that custom duty hike has enhanced the smuggling of gold.

(JPN/Bureau)

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